42% of Americans Don't Know This Key Feature of Their Health Insurance Plans
Healthcare is a massive expense for working Americans, as well as retirees, so it pays to do what you can to make it as affordable as possible. But new data from HSA Bank reveals that 42% of Americans may be losing out on an opportunity to save money by not knowing one key thing: whether their health insurance plans are eligible for a health savings account (HSA).
An HSA is a hybrid savings and investing account that lets you set aside money for healthcare costs in a tax-advantaged fashion. The money you put into an HSA goes in tax-free, similar to how traditional 401(k) and IRA contributions are made with tax-free dollars.
Furthermore, any funds you don't use immediately for medical care can be invested and grown into a larger sum, but those gains won't be taxed. Your HSA withdrawals also won't be taxed, provided they're used for qualified medical expenses.
Source Fool.com
